A PresentationOn the topic
Business Process Re-engineering
For The Subject
Total Quality Management
Presented By:Anchal(30) & Homi(42)
Business:“A business is an organization designed to
provide goods, services or both to the consumers.”
Process:“A process is a structured, measured set
of activities designed to produce a specified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization.”(Davenport, 1993)
Business Process:“A set of logically related tasks performed to
achieve a defined business outcome.”(Davenport & Short,1990)
Some Basic Concepts
• Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of people. Re-engineering is the act of redesigning the processes and products to make them better.
• “Business Process Reengineering (BPR) is basically the fundamental rethinking and radical re-design of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.”(Hammer & Champy,1993)
BPR ProcessFive Steps:
a. Develop the Business Vision and Process Objectives: BPR is driven by a business vision which implies specific business objectives such as Cost Reduction, Time Reduction, Output Quality Improvement etc.
b. Identify the Processes to be Redesigned: Most firms use the High-Impact approach which focuses on the most important processes or those that conflict most with the business vision. Lesser number of firms use the Exhaustive approach that attempts to identify all the processes within an organization and then prioritize them in order to redesign urgency.
c. Understand and Measure the existing processes: For avoiding the repeating of old mistakes and for providing a baseline for future improvements.
d. Identify IT levers: Awareness of IT capabilities can and should influence process design.
e. Design and Build a Prototype of the New Process: The actual design should not be viewed as the end of BPR process. Rather it should be viewed as a prototype, with successive repetitions. When the new process will bring considerable change so that objectives are achieved, BPR process is said to be completed.
Reasons for failure of BPR
Sometimes due to some reasons BPR fails to complete its functions. These reasons may be: Trying to fix a process instead of changing it. Not focusing on business processes. Ignoring everything except process redesign e.g. re-
organization, reward system, labour relationships, re-definition of responsibility and authority.
Quitting too early. Allowing existing corporate cultures and management attitudes
to prevent re-engineering from getting started. Assigning someone who doesn’t understand re-engineering to
lead the effort. Failing to distinguish re-engineering from other business
improvement programs. Concentrating exclusively on design(forgetting
implementation). Trying to make re-engineering happen without making anyone
unhappy
S.No. Basis of Difference
Improvement Due to TQM
Innovation Due to BPR
1. Level of Change Incremental Radical
2. Starting Point Existing Process Clean State
3. Frequency of Changes
One-time/Continuous One-time
4. Time required Short Long
5. Typical Scope Narrow, within functions
Broad, Cross-functions
6. Risk Moderate High
Differences Between TQM and
BPR
Benefits• Brings Innovation in the
organization• Competitive Advantage.• Customer Satisfaction• Adaptation to changing needs.• Building of Brand value to the
Company• Building of Employee Morale• Continuous growth of Business.
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